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To: groanup
Everyone knows the 1930's economy was due to the 1929 bubble and all the "false" prosperty that went before it. FDR said so.

As to crashes look no farther back than Greenspan's rate hikes of 1999 and 2000. And before blaming all those crazy market players, please tell me you know what the Special Liquidity Facility was and how it affected the market. The stock market should never be attacked with monetary policy. The results were a disaster in 1929, 1999 in the US, and 1990 in Japan.

60 posted on 12/01/2004 7:18:31 PM PST by Moonman62 (Federal Creed: If it moves tax it. If it keeps moving regulate it. If it stops moving subsidize it.)
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To: Moonman62
"As to crashes look no farther back than Greenspan's rate hikes of 1999 and 2000. And before blaming all those crazy market players, please tell me you know what the Special Liquidity Facility was and how it affected the market. The stock market should never be attacked with monetary policy. The results were a disaster in 1929, 1999 in the US, and 1990 in Japan."

The Fed raised rates in 1994. I don't recall a crash. The Fed raised rates in 1989. I don't recall a crash. You need to read John Kenneth Galbraith's book: "A History of Financial Euphoria". It's all there. A bubble every 20-30 years and everyone has the same traits. Nobody sees it, nobody blames themselves but they blame everyone else. Somebody must PAY!

I just looked up the special liquidity facility. So what? Certain banks can pay over and above the discount window rate for money? Big deal. Have you ever been the officer at a bank who has to go to the discount window for money? It's like you are the heathen banker of the forest. They don't treat you very well. They don't cooperate with you at all. You'd BETTER have a real good reason and it'd better not be that your bank is going under.

63 posted on 12/01/2004 7:36:22 PM PST by groanup (Rats are afraid of the light so spread a little sunshine.)
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